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What you need to know

Bitcoin as an Investment

Bitcoin is the first decentralized cryptocurrency that allows you to pay anyone in the world, instantly, without the need of a central authority. Nodes in the peer-to-peer bitcoin network verify transactions and record them on a blockchain (a public distributed ledger). The price of a bitcoin can be unpredictably, and unlike gold, is a very young economy with bitcoin only being invented in 2008. Over short periods of time the price of bitcoin can rise and fall dramatically but its price has increased faster than any other asset over the past 10 years. Whether it is a good investment or not, it depends. Individuals should look inside their own investment portfolios, risk tolerance and financial goals before investing in bitcoin. For those with a specific financial profile and goals, a bitcoin allocation of 1%-10% may be advisable.

Recommended ETFs for Bitcoin Investment

  • FBTC | Fidelity Wise Origin Bitcoin Fund
  • IBIT | iShares Bitcoin Trust ETF

FAQs

What does BTC mean?

BTC and ₿ are symbols for bitcoin.

How many bitcoin can be created?

One of the main characteristics of bitcoin is that it has a limited supply of 21 million. As of 2024 there is around 20 million bitcoin in circulation. Bitcoin has a built in halving mechanism where it slows down the creation of new bitcoin every four years, leaving the final bitcoin to be mined sometime around 2140.

What is bitcoin mining?

Bitcoin mining refers to validating transactions and adding new blocks to the blockchain, thus creating new bitcoin. Miners validate transactions by solving complex cryptographic hash puzzles. Proof of work is the process of guessing the correct number (hash). Miners randomly guess the target hash as quickly as possible until one miner arrives at the correct answer. After  successfully adding a block to the blockchain, the miner receives a bitcoin for the competition and process as a reward. Bitcoin mining requires powerful computing to guess and solve these complex mathematical problems. 

Refer to bitcoins own page for more information on mining. 

Is bitcoin legal in the United States and other parts of the world?

Bitcoin has not been made illegal in the United States and most parts of the world. 

Refer to bitcoins own page for more information on the legality of bitcoin. 

Where can read and learn more about bitcoin?

Please refer to bitcoins own page for more information. 

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